Compounding Pharmacy Market Scope and Trends Report 2025

Compounding is the science of combining and preparing personalized medicines for patients. These medications are prepared based on the practitioner’s prescription wherein, the individual ingredients are mixed together as per the suggested dosage form, and strength. The trained pharmacists are approved to personalize the medicine for the patient meeting their specific needs such as strengths, dosage forms, flavors, and exclusion of ingredients for which the patient is allergic or sensitive. However, compounded drugs are not FDA approved, indicating that FDA does not inspect the safety and the effectiveness of these drugs. This responsibility is held by the state boards of pharmacy, who verify that the state-licensed pharmacies manufacture compound drugs comply with conditions of section 503A of the FDCA. For the purpose of inspection, compounding pharmacies are segmented into sterile and non-sterile facilities.

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The growing patent expiries is one of the primary growth driving factor in the compounding pharmacy market. The shortage of drugs in the U.S. as reported by the U.S. FDA and also the similar shortages globally; the various advantages of compounding drugs such as the customization according to the patients’ needs contribute to the growth of the market. However, lack of efficient regulations in place in various regions, might lead to adulterated drugs being sold in the market, which might negatively impact the market.

The compounding pharmacy market can be segmented on the basis of product type, therapeutic area, distribution channel, and region. On the basis of product type, the compounding pharmacy market can be segmented into oral medications, topical medications, suppositories, and others. The oral medications can be further segmented into capsules, tablets, suspensions, lozenges, and others. The topical medications can be further segmented into creams, gels, ointments, and others. On the basis of therapeutic area, the market can be segmented into pain medications, hormone replacement therapies, dermatological applications, and others. On the basis of distribution channel, the market can be segmented into compounding pharmacies, and traditional stores. On the basis of product type, topical medications are anticipated to record significant growth in the forecast period, owing to the growing demand for dermatological applications and rising market for hormone replacement therapies. Hormone replacement therapy is anticipated to be the growing application in the forecast period, owing to their growing application in the treatment of various diseases such as cancer, and also in maintaining the hormonal levels in menopause. On the basis of distribution channel, compounding pharmacy stores which are approved by state regulatory bodies are anticipated to record robust growth in the forecast period.

Geographically, the market can be segmented into five regions, including North America, Latin America, Asia Pacific, Europe, and Middle East & Africa. North America was the leading region in the compounding pharmacy market. It is anticipated to be the highest revenue contributor in the forecast period. The growth can be attributed to the shortage of drugs reported by the FDA in the U.S. Europe in anticipated to be trailing next region in terms of revenue contribution to the market. Asia Pacific is anticipated to record highest CAGR growth in the forecast period. This growth can be attributed to the growing pharmaceutical awareness among people, increasing geriatric population, and expansion of infrastructural facilities, among others. The growth in Asia Pacific is expected to be driven by India, and China among other countries.

The leading players in the compounding pharmacy market include Fagron, Compounding Pharmacies, Institutional Pharmacy Solutions, B. Braun Melsungen AG Company, Cantrell Drug Company, PharMEDium Services LLC, Triangle Lorraine’s Pharmacy, and Fresenius Kabi AG., among others.

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